Centuri Holdings Reports $2.64 Billion Revenue, Net Loss of $6.7 Million for Fiscal Year Ending December 2024

Centuri Holdings, Inc. reported a total revenue of $2.64 billion for the fiscal year ending December 29, 2024, a decrease of 9% from the previous year's revenue of $2.90 billion. The company's gross profit also declined, falling to $220.7 million, down 19.3% from $273.4 million in the prior year. This decline in revenue and profitability was attributed to reduced net volumes under existing master service agreements (MSAs) and lower margins on bid work, particularly in the U.S. Gas and Union Electric segments. The company recorded a net loss of $6.7 million, a significant improvement compared to a net loss of $186.2 million in the previous fiscal year, which included a substantial goodwill impairment charge of $214 million.

In terms of operational developments, Centuri served over 400 customers during the fiscal year, with its top 20 customers accounting for 67% of total revenue. The company operates across 87 locations in 45 U.S. states and two Canadian provinces, reflecting its extensive geographic footprint. The company’s workforce comprised approximately 8,687 employees, with 59% represented by unions. The company emphasized its commitment to sustainability and safety, which are integral to its operations in modernizing utility infrastructure.

Strategically, Centuri underwent significant changes during the fiscal year, including its separation from Southwest Gas Holdings, which was completed in April 2024. Following this separation, Centuri's common stock began trading on the New York Stock Exchange under the ticker "CTRI." The initial public offering (IPO) raised approximately $327.7 million, which was primarily used to pay down existing debt. The company also entered into a securitization facility to enhance cash flow from trade accounts receivable, further improving its financial flexibility.

Looking ahead, Centuri's management expressed optimism about the future, citing the ongoing demand for utility infrastructure services driven by regulatory requirements and the transition to renewable energy sources. The company anticipates continued growth opportunities in its core markets, particularly as utilities invest in modernizing their infrastructure to meet evolving energy needs. However, management acknowledged potential challenges, including rising costs related to labor, materials, and inflation, which could impact profitability if not effectively managed.